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You'll Lose Money and Buy a Load of Pain, Unless You Arm Yourself with Basic Information About How Your Brain Works

Posted by L Levin on March 9, 2011 at 8:52am

In Mean Markets & Lizard Brains, former Goldman trader Terry Burnham says our primitive [or "lizard"] brain was designed to help our ancestors hunt for food, daily survival stuff.

But “by its very nature, investing requires us to be forward looking, to anticipate events. Our lizard brains, however, are designed to look backward. Thus, the lizard brain causes us to be optimistic at market peaks (after rises) and to be pessimistic at market bottoms (after falls).” So whether it’s optimism or pessimism, greed or fear, your emotions do your investing, not reasoning and logic—and you can’t trust them.           http://www.washingtonsblog.com/2011/03/we-are-easy-prey-for-those-who-want-to.html

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The Inside Keys To Today's Market Action (NYSE:USO) (NYSE:GLD) (NYSE:SLV) (NYSE:SPY)

Posted by Aadil on March 8, 2011 at 10:01pm
The markets are jumping higher today on the back of a commodity pull back. Oil is dropping slightly on the day as it appears Moammar Gadhafi is on the retreat. Not only has the U.N been meeting about a possible no fly zone over Libya but rumors have surfaced that the Gadhafi is trying to negotiate an exit from Libya with the opposition. As of now, the rest of the Middle East is relatively quiet.  Oil is lower on the day with the United States Oil Fund LP (NYSE:USO) trading at $41.98, -0.39 (-0.92%). As is common knowledge, a lower oil price is viewed by the markets as being better for the economy. Should oil prices reverse higher, the markets would most likely start to sell off.

Other commodities are starting to pull back. Gold and silver, which are viewed as safe investments during times of unrest are dropping today. This coincides with oils retreat as fears are subsiding slightly. The SPDR Gold Trust (NYSE:GLD) is at $139.08, -0.64 (-0.46%) while the iShares Silver Trust (NYSE:SLV) is at $34.91, -0.32 (-0.91%).

It appears the two driving forces in the market are oil prices and addition or lack of quantitative easing. The markets are reacting to oil and its moves but also realize the drug which has been keeping the market near a 100% gain since March 2009 is about to end. This drug was the Federal Reserve policy of printing trillions of dollars and flooding the markets with them. The end to quantitative easing will be like a drug addict, taken off their drugs. Not a pretty sight. The markets are starting to realize the end is coming to free money and getting nervous. To gain more hardcore analysis, swing trades, guidance and education, join the Research Center. Take a free trial today.

Related: SPDR S&P 500 ETF (NYSE:SPY) 

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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Fat Tuesday Rally

Posted by Aadil on March 8, 2011 at 9:59pm
This was another day when the SDPR S&P 500 Trust(NYSE:SPY) rallied on extremely light volume. Yesterday the highly popular SPY traded over 200 million shares and the market was down sharply, however, the volume on the SPY today is just 135 million shares at 3:51 pm EST and the market is trading sharply higher. Traders must remember the old market adage that states, “never short a dull(light volume) market.”
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